Tips for Re-Establishing Your Credit for Mortgage Refinancing After Bankruptcy
Mortgage refinancing after bankruptcy can seem like an unachievable feat. Refinancing after bankruptcy isn't going to be as tough as you thought. If you are one of the fortunate people that were able to keep their home through the bankruptcy process, then you have a decent shot at refinancing once you are discharged.
Mortgage refinancing after bankruptcy is best accomplished if you have worked on rebuilding your credit and have not fallen behind on anything, especially mortgage payments at any point after filing.
The Canada Mortgage and Housing Corporation (CMHC) offers a low down payment mortgage for people wishing to buy a home that have been discharged from their bankruptcy for at least two years and one day. There are also banks and other types of lenders out there that would be willing to take a risk on lending money to you.
The Best Way to Ensure Mortgage Refinancing After Bankruptcy
Claiming bankruptcy will do some damage to your credit score. Your first goal should be to start rebuilding your credit. You can do this while you are still paying down your reduced debts.
Find a secured credit card. A secured card is one that you put money on before you make purchases. Put money onto a secured card on a regular basis and buy your consumables, like food and gasoline with the card. Do your best not to let the balance of the card go over 75% of the high credit limit, and always make the minimum monthly payment.
For example, you spend $750 a month on food and gasoline. You get a secured card and put $1000 on it and you always only spend around $750 each month and pay off the balance every 30 days.
Next, you can apply for other types of credit. This can be done by taking out a small loan from a bank or other institution — anything to make your recent credit history appear less risky to mortgage lenders.
If you have equity in your home then there may be a lender that will approve you for mortgage refinancing after bankruptcy. Last, get help. Retaining a mortgage broker can be beneficial, in that they can take the time to find you the best deal for your current situation.
It Can Be Done
Yes, mortgage refinancing after bankruptcy is not going to be easy, but it is not overly hard either. Follow some of these simple guidelines, and you will be renegotiating your contract in no time.
Bad Credit Mortgage Brokers can help you get your ducks in a row for the best mortgage refinancing after bankruptcy options. Contact us today!Request Mortgage Info
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